Petroleum and Natural Gas Minister, M Veerappa Moily said that his ministry was working on a “positive and forward-looking” shale gas policy that would be placed before the Union cabinet shortly.
Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas.
According to the available data, six basins-Cambay, Assam-Arakan, Gondawana , KG onshore, Cauvery onshore and Indo Gangetic basins, hold shale gas potential. The Directorate General of Hydrocarbons has proposed to offer areas for exploration shale gas on royalty and production-linked payments to the government.
The draft policy does not permit cost recovery and hence profit sharing – the two features that came under criticism by the Comptroller and Auditor general (CAG) of India in its audit report on RIl's KG-D6 block.
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